Gold heads towards $1,700 if support holds, writes Carolyn Boroden.
Gold futures (GC) has potential upside of $1,709.41 as long as two support areas hold. There's initial support at the recent low near $1,626, and a wide cluster of support at symmetry projections between $1,614.80 and $1,621.30.
As long as price holds above one of these two zones, we can begin to look at buy triggers. If price breaks beneath there, we'll back off until further notice and wait for the next set-up.
But those two areas would be a natural place for gold to potentially resume the rally.
I also ran timing projections off of the last high in gold, and timing points right at where we made the low around $1,626, another argument for the low being in.
The only problem is that we also need to clear a cluster of Fibonacci extension resistance between $1,652.20 to $1,657.30 in order to reach the $1,709.41 target.
Carolyn Boroden, also known as the "Fibonacci Queen," is an analyst at ElliottWaveTrader.net, where she covers U.S. equity indices, precious metals, and individual stocks based on her unique Fibonacci analysis. See more of our analysis on gold/GC as well as on SPX, ES, Nasdaq/NQ, TLT and oil/CL in our video here.
